RE: Getting started as a part-time freelancer

["Lisa Wright" <liwright -at- earthlink -dot- net>]

It cost me $75 to consult my accountant about self-employment taxes and
quarterly reporting. It's a little complicated to figure out yourself
and well worth paying someone trustworthy to help you navigate. 

FWIW, I've heard from many people about being shocked by the amount of
taxes they have to pay. While it's not that much more than you pay as a
W-2, you're responsible for writing the entire check yourself all at
once, so it's a bigger psychological shock than if an employer lops some
of the top every couple of weeks. Here's what I'm doing to stay ahead of
the game:

* Save 50% off the top. This money is to take care of state and local
taxes. Since I will not owe 50%, there will be a nice surprise at the
end of the year. (My own little tax refund.)  

* Track all books, mileage and related expenses. I'm not working from
home, so I can't take some of the best deductions, but it all helps.

* Comply with quarterly reporting requirements.

* Save an additional 10% off the top for regular savings.

Your tax situation is also complicated by the fact that you are a
regular employee and so have taxes already going into the system.

Consult a lawyer and an accountant. It'll be about $200 total, and it'll
pay off now and in the future. Consider it an investment. (The fees are
probably deductible too.)

http://www.stcrmc.org also has some very good information about 1099
work, and contracts, but it's still no substitute for specific advice.

Lisa 

-----Original Message-----
From: bounce-techwr-l-53104 -at- lists -dot- raycomm -dot- com
[mailto:bounce-techwr-l-53104 -at- lists -dot- raycomm -dot- com] On Behalf Of Anonymous
Sent: Wednesday, July 16, 2003 5:49 AM
To: TECHWR-L
Subject: FWD: Getting started as a part-time freelancer




Forwarded anonymously on request. Please reply to the
list if you want the original poster to see your message. EJR
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I've been offered a contract to do some small freelance
writing and editing jobs aside from my regular tech writing job. I've
always been a full-time employee, so contract work is new to me.

I will search the archives for relevant posts, but I'd appreciate any
additional hints from the Whirlers about getting started with this new
endeavor. I'm not even sure what to look for in the archives, or what
questions to ask!

I've received a 17-page contract, and I'm not sure what to
look for in there. Will I need to make additional payments
to the IRS beyond my usual withholding? I'm not in a
position to consult with a lawyer and accountant right now; that would
cost more than I'll make on the first job!

Thanks for your help.


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